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yes you are right those hill rack have a sight glass on the liquid line that is a 1/4ins line connected to the shightglass at the side of liquid line so that a mositure indicater did not know that throught that was for liquid.

When you start getting into the large pipe they use the "bypass" to cut down on cost. Can you imagine the price tag on a 2" moisture indicator fitting?

It is used solely for moisture indication not as a liquid indicator.

If installed as recommended it will indicate liquid. The turbulence caused by the small lines and curves will cause liquid with low subcooling to flash in the glass more than the relatively open path in the larger pipe.